OTTAWA, Oct 18 (Reuters) - Canada's annual inflation rate
held steady at 1.1 percent in September while core inflation was
unchanged at 1.3 percent, both well under the Bank of Canada's
target rate of 2.0 percent, according to Statistics Canada data
released on Friday.

On a monthly basis, overall and core consumer prices were
0.2 percent higher in September than in August.

The overall inflation numbers were a touch higher and core
slightly lower than predicted. The median forecast in a Reuters
survey of analysts was for 1.0 percent annual inflation and 0.1
percent monthly inflation; and for an annual core rate of 1.4
percent and monthly core of 0.3 percent.

The Bank of Canada aims to keep annual inflation between 1
and 3 percent, and the tame data underlines how little pressure
it faces to raise interest rates. The last time inflation hit
the central bank's precise target of 2 percent was April, 2012,
and the last time core inflation, which strips out volatile
items, hit that rate was June, 2012.

On a monthly basis, higher prices for household operations
and furnishings, clothing and footwear, and health and personal
care offset less expensive gasoline and food.